TheJakartaPost
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Regulatory dualism hampers fintech growth
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Online borrowing is gaining popularity in Indonesia, as it is now easy for people to use the internet to access funds. There are 28 financial technology (fintech) startups that are already registered with the Financial Services Authority (OJK). (Shutterstock/File)
W
ith its high adoption rate of new technologies, Indonesia has become one of the most fertile grounds for financial technology (fintech) companies looking to offer faster and more convenient financial services to its large population.
The fintech companies operating in the country provide a variety of services, from peer-to-peer (P2P) lending and payment to personal finance and wealth management.
Fintech’s growth in Indonesia has been overwhelming, both in terms of customers and businesses. By August, 64 fintech companies had registered with the Financial Services Authority (OJK), compared to 32 fintechs in January. In addition, 34 fintechs have registered with Bank Indonesia (BI) by August, up from 15 in January.
The presence of the fintech companies has become the backbone of the country’s growing digital economy. The government has set a target of making Indonesia the largest digital economy in Southeast Asia by 2020, with e-commerce transaction value of US$130 billion a year and with the creation of 1,000 tech startups with a value of $10 billion.
